Aged Care Costs in Australia 2026: What Families Really Pay

One of the biggest concerns for families exploring aged care is the cost. The good news: the Australian Government heavily subsidises both home care and residential aged care. The less straightforward news is that understanding exactly what you will pay takes some unpacking.

Support at Home Costs (Home Care)

Government Contribution

Once approved, the government pays the majority of care costs directly to your chosen provider. The amount depends on your classification level (1–10), with higher levels funding more care for greater needs.

Basic Daily Fee

Most people pay a Basic Daily Fee set at 17.5% of the single basic age pension rate — approximately $12–$14 per day in 2026. This is paid regardless of how many services you use.

Means-Tested Care Fee

People with higher income or assets may also pay a means-tested fee on top of the Basic Daily Fee. There are annual and lifetime caps — once reached, you pay no further means-tested fees for life.

Provider Fees — The Big Variable

This is where costs vary significantly. Providers charge:

• Management/administration fees — typically 15–35% of your total funding. A provider charging 35% management fees delivers significantly fewer care hours than one at 15%.
• Hourly service rates — for personal care, domestic help, nursing, allied health
• After-hours surcharges — evenings, weekends, public holidays

This is why provider selection matters so much. Two providers delivering the same government funding can result in very different amounts of actual care.

Residential Aged Care Costs

1. Basic Daily Fee

Covers day-to-day living (meals, laundry, utilities). Set at 85% of the single basic age pension — approximately $60–$65 per day in 2026. Everyone pays this regardless of financial situation.

2. Means-Tested Care Fee

An additional contribution based on your income and assets, calculated by Services Australia. Annual and lifetime caps apply.

3. Accommodation Costs

Usually the largest cost in residential care. You can pay as:

• Refundable Accommodation Deposit (RAD) — a lump sum fully refunded when you leave. Can range from $200,000 to over $1 million.
• Daily Accommodation Payment (DAP) — a daily rental-style payment.
• Combination — part lump sum, part daily.

People with lower means may have accommodation fully subsidised by the government.

How to Reduce Your Aged Care Costs

• Choose a provider with lower management fees — the single biggest impact for home care clients
• Get the financial assessment done promptly — ensures you pay only what you're required to pay
• Review your care plan regularly — ensure your funding level reflects your current needs
• Ask questions about charges — providers must give you monthly account statements

Get a Free Cost Estimate

Because fees are means-tested, a personal estimate requires a Services Australia assessment. We can walk you through the likely costs based on your situation and help you understand what you're entitled to — for free.

Call 1800 303 101 (Mon–Fri, 9am–5pm AEST) or request a free consultation.

Last updated: February 2026. Fee figures are indicative based on 2025–26 pension rates.